Question Details

London Co. uses a periodic inventory 


1
Toso Company uses the periodic inventory system to account for inventories. Information related to Toso Company's inventory at October 31 is given below:
October	1	Beginning inventory	400	units @ ₤10.00 =	₤ 4,000
	8	Purchase	800	units @ ₤10.40 =	8,320
	16	Purchase	600	units @ ₤10.80 =	6,480
	24	Purchase	   200	units @ ₤11.60 =	      2,320
		Total units and cost	2,000	units	₤21,120

Instructions
1.	Show computations to value the ending inventory using the FIFO cost assumption if 450 units remain on hand at October 31.
2.	Show computations to value the ending inventory using the weighted-average cost method if 450 units remain on hand at October 31.
a3.	Show computations to value the ending inventory using the LIFO cost assumption if 450 units remain on hand at October 31.



2
London Co. uses a periodic inventory system. Its records show the following for the month of May, in which 75 units were sold.
Units	Unit Cost	Total Cost
May   1  Inventory	35	$  8	$  280
15  Purchases	30	11	330
24  Purchases	  40	12	    480
Totals	105	$1,090

Instructions Compute the ending inventory at May 31 and cost of goods sold using the (1) FIFO and a(2) LIFO methods. Prove the amount allocated to cost of goods sold under each method. 




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